Kelkar panel questions FY13 Budget maths

Kelkar panel questions FY13 Budget maths

The Vijay Kelkar panel on fiscal consolidation has questioned the Budget numbers on subsidies and tax receipts for 2012-13, because of which it expects the fiscal deficit to cross six per cent of GDP this financial year if the reforms suggested by it are not undertaken.

The panel wants the finance ministry to meet the disinvestment target of Rs 30,000 crore, as it has got feedback that only Rs 10,000 crore can be mopped up, according to those in know of the development.

Kelkar panel questions FY13 Budget maths

Those in know do not say by how much the fiscal deficit would ultimately be pruned this fiscal, saying it depends on the reforms carried out by the government.

They concede oil reforms are not easy. While the government has targeted to mobilise Rs 30,000 crore from disinvestment, the feedback the committee got from the ministry was that no more than Rs 10,000 crore could be mobilised thus.

As such, the committee recommended meeting at least the target to prune the fiscal deficit.